The variances are squared so that all deviations above and below the mean become positive values. Taking the square root of the variance then gives a measure of the differences from the mean: the standard deviaton.
Squaring the deviations also makes the bigger differences stand out. Look at 100 squared vs 10 squared.
equal variances
total master-budget variances
No, both unfavorable and favorable variances should be investigated. While unfavorable variances indicate areas where performance is lacking and may require corrective action, favorable variances can highlight opportunities for efficiency and best practices that can be leveraged further. Analyzing both types of variances provides a comprehensive understanding of performance and can inform better decision-making.
Adverse variances means unfavourable variance which is actual expenses are more than budgted variance.
Efficiency Varian materials and direct labor, the variances were recorded in specific general ledger accounts.
equal variances
Try calculating the variance without the squaring bit - it gives 0 every time. Squaring allows you to ignore the direction (sign) of the number.
total master-budget variances
should all variances be investigated
An F-test can be used for variances.
Adverse variances means unfavourable variance which is actual expenses are more than budgted variance.
Square units measure area.
Price and quantity variances are computed respectively because different managers are usually responsible for buying and for using inputs.
Equal variances, independent observations and normality
Efficiency Varian materials and direct labor, the variances were recorded in specific general ledger accounts.
he made the theorem C squared = A squared + B squared and A squared = C squared - B squared or B squared = C squared - A squared
Momentum transfer or pressure variances.